Mortgage Loan Rates

Mortgage Loan Rates
By [http://ezinearticles.com/?expert=Steve_Valentino]Steve Valentino

A mortgage is a loan that uses real estate as collateral. Mortgage loan rate is the interest rate charged on a mortgage.

Mortgages can be classified into two types: residential mortgage and commercial mortgage. In case of a residential mortgage, the self-occupied residential property of a borrower is provided as collateral. A commercial mortgage is a loan for which real estate other than a residential property occupied by the borrower is provided as collateral to secure payment of the principal and interest or just the interest. Usually, in the case of commercial mortgages, the collateral is a commercial building, office, store or other business real estate.

Commercial mortgages are typically made by businesses that need the money for working capital, purchasing new equipment or expansion. Since a business may be formulated as a partnership of a limited liability firm, the assessment of creditworthiness of a business by a financial institution is relatively more complex.

Mortgage loan rates for a residential mortgage differ from the rates for a commercial mortgage. The rates are usually higher in the case of a commercial mortgage. This is because the risk associated with residential mortgages and the percentage of defaults is lower compared to commercial mortgages.

Mortgages can also be classified as fixed rate mortgages and adjustable rate mortgages. Both fixed rate as well as adjustable rate mortgages can be obtained for residential as well as commercial mortgages. The initial interest rate in the case of an adjustable rate mortgage is lower than the interest rate for a fixed rate mortgage. This is because in the case of adjustable rate mortgages, the borrower assumes part of the risk of interest rate fluctuations. After an initial period, interest rates for adjustable rate mortgages are linked to an underlying market index. The rates periodically move, in accordance with the movements in this market index.

It has been observed that adjustable rate mortgages work well in case the term or the loan is short and fixed rate mortgages are better suited for mortgages with long terms. [http://www.i-LoanRates.com]Loan Rates provides detailed information on Loan Rates, Home Equity Loan Rates, Car Loan Rates, Mortgage Loan Rates and more. Loan Rates is affiliated with [http://www.i-LoanCalculator.com]Auto Loan Calculators.

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Buy to Let Mortgages: Wonderful Means of Investment

Buy to Let Mortgages: Wonderful Means of Investment
By [http://ezinearticles.com/?expert=John_Carry]John Carry

Buy to let mortgages enable you to purchase property for the purpose of letting it out. Buy to let mortgages are wonderful investments considering the fact that more often than not, the property prices keep on rising. Buy to let mortgages are taken by the borrowers to purchase second home for the purpose of letting it out and to earn some monetary gains in the process.

The borrowers looking for buy to let mortgages should first decide whether they want monthly income or capital growth from the property they want to invest in. This decision will affect the choice of property that they need to buy.

Buy to let mortgages are increasingly becoming popular in the UK financial market as borrowers begin to realise the benefits of purchasing a property through buy to let mortgages. Buy to let mortgages allow you to purchase property and rent it out. The rent can be used to pay the installments and at the end of the mortgage period you have a property secured in your name.

A little bit of market research is needed to determine the property that you want to buy. You must take care that the property is worth realising the rent so that you can easily repay the installments in time.

Buy to let mortgages, like all other mortgages, require you to put collateral that may be your first home or any other property. Buy to let mortgages come with different interest payment plans like fixed rates, discounted rates and capped rates.

You can apply online and avail buy to let mortgages at competitive rates.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Shakespeare Finance as a finance specialist. For more information visit us http://www.easy-buy-to-let-mortgages.co.uk

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